IRS Rеfund Stimulus Chеck is a direct payment made by the government to individuals during economic distress to encourage spending and increase revenue for businesses. The federal government has issued stimulus checks several times, most recently during the COVID-19 pandemic to mitigate the economic impact of the shutdown.
During the COVID-19 lockdown, Americans received three rounds of Economic Impact Payments (stimulus checks) to help them stay on more stable financial footing during this difficult time. The first round, which was authorized in March 2020 by the CARES Act, provided checks of up to $1,200 per eligible adult and $500 for each qualifying dependent under 17. The second and third rounds were approved by Congress and signed into law in December and April 2021.
The Impact of Stimulus Checks: A Closer Look at Economic Stimulus Measures
The survey results shown in Chart 1 show that most people used their stimulus check to pay expenses, but also to strengthen savings or pay down debt. In addition, the findings indicate that households with children report using their stimulus checks at a higher rate than those without children.
Although it’s not possible to know what people really did with their money, these results are consistent with general patterns in previous studies examining how consumers use or expect to use direct transfer payments. Olivier Coibion, Yuriy Gorodnichenko, and Michael Weber find that the less financially constrained households (poor, single filers, or those with children) are more likely to spend their entire transfer amount, while high-income households tend to spend smaller amounts.
